Wednesday, 03 February, 2021
GS piece just out.. EUR Long end yields to rise further
GS piece just out.. EUR Long end yields to rise further
Despite near term setbacks to Europe vaccine rolloout, GS continue to f/c a strong cyclical recovery this yr.
As a result , they expect a continues rise in l/end yields.
GS Estimates 30y core rates have around 30bp of upside to be consistent with the growth pricing in other european macro assets. Contingent on stronger euro growth , they think the ECB will tolerate this repricing.
GS expect 10s30s curve to continue to steepen, as cyclical improvement in europe drives a long end lead sell off relative to a belly led sell off in the US.
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